Online Clothes Shopping An Industry Landscape Study Focusing on Returns
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Online Clothes Shopping
An Industry Landscape Study Focusing on Returns
Patricio Rivero, Zihan Zhu
This work was created in an open classroom environment as part of a program within the Sutardja Center for Entrepreneurship & Technology and led by
Prof. Ikhlaq Sidhu at UC Berkeley. There should be no proprietary information contained in this paper. No information contained in this paper is intended to
affect or influence public relations with any firm affiliated with any of the authors. The views represented are those of the authors alone and do not reflect
those of the University of California Berkeley.
What’s Going on in the Market?
Online apparels and
accessories revenue is
projected to be
86.4 Billion USD
by 2018.
Return rate of 20-30% of apparel orders.
70% of returns are fit-related.
Each return costs $3-12 to handle.
How are People Dealing with Returns ?
Virtual Fitting: Model-Based ● A precise 2D or 3D model of each customer is generated. ● Main technologies: scanning booth, estimated body measurements, pictures + virtual reality. ● Meality (booths in Bloomingdales), Metail, Zugara.
• Investment risks are high. • People don't really want to see what they look like. • The scanner serves as an example of "the overreach of technology."
Virtual Fitting: Big Data ● Each Customer has an account detailing their body measurements. ● Adds-on appear on retailer websites, giving size suggestions. ● Companies collects huge amount of data. ● Currently on many US retailer websites. ● Companies: TrueFit, Virtusize, Fits.me, Bodi.me, etc.
What Do Women Think?
“Size charts are “Too much trouble to
way too basic” input measurements”
“It really depends on
body type, it’s very
personal”
“Size is not the only thing “I go to the store
that matters, cut and and try on clothes
texture are very important” to know my size,
then I shop online”
What About the Kids?
“It’s very easy to shop for baby
clothes, sizes are standard no
“A mom always matter the brand.”
knows what size their
kids are”
“Kids are Ok with any
clothes on, they are kids.”
Social Aspect “I usually look at the comment area below the clothes”. “If I don’t know my size, I read reviews or post a question on the discussion board”. Most women trust what other women have to say about clothes.
Social Aspect “Discover clothes that fit”
Virtual Fitting Industry Future: Interview Insights ● Augmented Reality (AR) development - Holo Lens by Microsoft. ● Big data - get to know the customer, and the ones like them. ● Social shopping - make home shopping a social thing. AR sharing.
How are People Dealing with Returns ?
Capitalize on Returns Keep what you want, return the rest.
Capitalize on Returns - Clothes Rental
Conclusion
● Where the industry is headed:
○ Technology improvements → higher trust
○ Customized service for fragmented
industry
○ Social aspect included in experience
○ Big dataVirtual Fitting Technical factors to consider, social factors, children and baby.
Companies in the Social Aspect Social aspect of clothing, communicate with friends, suggestions on styles, etc
Intro to Clothes Online Shopping What has changed, evolution of industry. Online shopping numbers, $$. What are the problems: high return rate.. mainly due to fitting.
Current Technologies
Meality
(Bloomingdales) Metail Bodi.me Fits.me TrueFit
The user uploads a
The user has three
Customer gets into couple of pictures, Thorough analysis of body
options to provide
scan booth, and 200k and software creates types, physical proportions and The user inputs size and
measurements: enter
body dimensional data 3d model. The user preferences of 5+ million brand of owned garment,
self-measured
points are collected. A goes to retailer's shoppers and the technical height, age, etc.TrueFit
dimensions, through
How it works profile is created and website and tries composition of thousands of has a huge database and
the compute
garment suggestions clothes on own garments to match the right looks for compatibility with
measurement system,
are displayed to model. Metail takes clothes to the shoppers. Clients garment, and suggests
and scanning body at
customer. Not in the pictures of the input measurements and avatar size.
scan booth. Tells you
business anymore. clothes of the is created to try on clothes.
what size to pick.
retailers.Other frictions High return rate, women use before returning → alternative business models: rental, switching, etc.
Original Outline:
1. Intro, venture idea.
2. Primary research: market size, what are the problems?
3. List of main problems: returns! Fit related issues and user experience
4. Research on current companies trying to solve the fitting problem. Their
technologies and business models.
5. Reviews and found that initial venture idea was not viable.
6. Interviews: Social aspects of online shopping, companies.
7. More research to look into return problem: capitalize on returns.
8. Alternative business models and industry trend.
9. Where the industry is headed: big data, personalized service, social online
shopping and tech improvements for higher fidelity.
Outline From class PDF:
Observation of a change and a hypothesis of what effect it will have in the industry. • Existing Market, map relevant firms
in the industry / space • The technical factors or technology changes • Any regulatory or societal factors to consider • Of
the existing firms in the area, who will win and lose, and why. Indicate new opportunities.You can also read
